In addition to a competitive rate, the product comes with incentives that are attractive to all borrowers. First time buyers can apply for a maximum advance of 95 per cent of the property value. The Bank will also refund the cost of a basic valuation fee, will not impose expensive higher lending charges, which are levied by some lenders, and offers extended income multiples.**
Customers that are remortgaging to the Co-operative Bank will get their legal and valuation fees completely free.
Sheila Macdonald, chief operating officer, said: “The recent rate cut was good news for borrowers, especially first time buyers, many of whom have been put off from buying a property by the cost of entering the housing market.
“This new rate will reduce those costs, as well as providing the peace of mind that comes with a low rate fixed for three years.”
All Co-operative Bank mortgage products offer customers fully flexible features. For example, borrowers can create and make payments into a ‘flexible fund’, which can then be used to pay off up to 10 per cent of the mortgage balance each year without penalty, thereby reducing the total amount of interest paid. Alternatively, borrowers can withdraw all or some of the fund at anytime, or use it to take a repayment holiday. In addition, to the customer’s advantage, interest on the mortgage is calculated on a daily basis, rather than by the traditional annual method, so that any early repayments result in reduced interest charges immediately.
Co-operative Bank mortgages also have a number of positive environmental features. First time buyers receive a free home energy rating report with their property valuation. This assesses the energy efficiency of the property, and identifies ways in which it can be improved, therefore providing both financial and environmental benefits.
For the duration of the mortgage, the Bank will also make an annual donation to Climate Care to help tackle global warming. This scheme was developed after extensive consultation with the environmental community, including WWF and Forum for the Future. Houses are one of the largest sources of carbon dioxide emissions in the UK and, by using the Bank’s annual donation on reforestation, Climate Care will be able to offset around one quarter of an average home’s carbon dioxide emission each year for the duration of the mortgage.
Anyone wanting further information about a high quality mortgage service with both financial and environmental benefits, should call The Co-operative Bank free on 08000 288 288 between 8 am and 9 pm, Monday to Friday, and 9 am to 5 pm Saturday.
